Home›Forex›Major Pairs›GBP/AUD steadies near 1.93 as markets weigh BoE versus…

GBP/AUD steadies near 1.93 as markets weigh BoE versus RBA

The Bank of England held rates at 3.75% in June while UK inflation was 2.8%, and analysts point to a potential move before year end as oil lifts and the Middle East risk premium rises.

Reported · Written up by our desk · Major Pairs

Oil price pressure and renewed Middle East tensions are back in focus for GBP/AUD, with traders watching whether the Bank of England or the Reserve Bank of Australia blinks first. Action Forex notes that the Bank of England held its policy rate at 3.75% in June, even as UK inflation was running at 2.8%, while crude has climbed on the renewed geopolitical backdrop.

In Australia, the Reserve Bank of Australia kept its cash rate at 4.35% after three straight increases, and Action Forex says core inflation has been stuck at 3.6%, leaving room for further tightening. The piece frames the current setup as two hawkish central banks sharing a similar inflation driver, but with a 60-basis-point rate gap in Australia’s favor that is shaping the pair around the 1.93 level.

Action Forex also highlights the technical picture, saying GBP/AUD is testing resistance at 1.9350 to 1.9400, a zone that has capped previous upside attempts. It adds that a confirmed break higher could point to the next resistance area at 1.9520 to 1.9550, a path that would likely need additional fundamental support such as further escalation in the Middle East or a more hawkish BoE.

The analysis flags downside risk if bullish momentum fades, citing a bearish RSI divergence on the 4H chart. It points to the nearest uptrend line as support, and says a break could expose 1.9080 to 1.9120, with a further drop to 1.8780 to 1.8820 if UK political developments or easing tensions weaken sterling.

Latest closeWTI crude $84.41 ▲6.5%

More like this

Sources